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Tilray Brands, Inc. (Nasdaq: TLRY; TSX: TLRY) reported its financial results for the fourth quarter ended May 31, 2023 yesterday. All financial data is reported in U.S. dollars, unless otherwise indicated and in comparison to the previous quarter. Highlights are as follows:

Q4 Financial Highlights

• Net Revenue: UP 26.5% to $184.2M from $145.6M
  • Cannabis Business: UP 35.6%
    • Cdn. Medical: UP 1.7%
    • Adult-use: UP 28.7%
    • International: UP 61.9%
  • Wellness Business: UP 23.3%
  • Beverage Alcohol Business: UP 57.3%
  • Distribution Business: UP 11.0%
• Adj. Gross Profit: UP to $68.4M from $(11.7)M 
  • Cannabis Business: UP $39.5M from $(32.8)M
  • Wellness Business: UP 18.9%
  • Beverage Alcohol Business: UP 78.0%
  • Distribution Business: DOWN 9.5%
• Adj. Gross Margin: UP  to 36% from 30%
  • Cannabis Business: UP to 61% from 47%
  • Wellness Business: DOWN to 30% from 31%
  • Beverage Alcohol Business: DOWN to 51% from 53%
  • Distribution Business: DOWN to 9% from 11%
• Net Income (Loss): DOWN to $(119.8)M from $(1,195.8)M; UP 49.0% excluding the impairment charge
• Adj. Net Loss: UP 36.8% to $(32.0)M
• Adj. EBITDA: UP 51.1% to $22M
• Operating Cash Flow: Positive at $44M
• Cash/Marketable Securities on Hand: Unchanged at $408.3M

Management Commentary:

Irwin D. Simon, Chairman and CEO, stated:

• “The recent closing of the HEXO transaction has boosted our competitive positioning in Canada, the largest, federally legalized cannabis market in the world. We are working towards a seamless integration into our efficient, built-to-last platforms as we leverage our deep CPG expertise and track record to drive both revenue and cost synergies while expanding product distribution in Canada and across international markets.”

Operational Highlights

• Tilray’s market share in Canada has reached ~13% and the Company holds the #1 market position across all major markets and a leading share across most product categories. Tilray is now #1 in Flower, Oils, and Concentrates, and #2 in Pre-Rolls, #4 in Vape, and Top 10 in all other categories.
• Tilray grew revenue in its beverage alcohol segment by 33% and adjusted gross profit by 24%. Tilray’s wellness brand, Manitoba Harvest, maintained its brand leadership position in branded hemp with 51% market share and stabilized its gross margin through price increases.

Fiscal Year 2024 Guidance

• The Company expects to:
  • achieve adjusted EBITDA targets of $68 million to $78 million, representing growth of 11% to 27% as compared to fiscal year 2023 and
  • generate positive adjusted free cash flow.

Stock Price

Tilray's stock price declined 41% during the Q4 period (March, April, May), declined a further 6.6% in June, climbed by 7.7% as of this past Tuesday, July 25th, jumped by 14.9% on Wednesday with the release of its Q4 financial report that morning and is up another 11.4% so far today, Thursday, July 27th, but is still down 24.2% YTD.

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